Friday, March 25, 2011
25 March 2011
SPY failed to close gap from March 9th today. It needs to get to 132.39 in order to do so.
pointed out since the market bottomed last week, the TSV and my short-term indicator were very low, and a bounce was to be expected. The bounce has come. Now, we watch to see how strong it is internally. The fact that this index had a lower high than previous and a lower low than previous shows internal market weakness - we do not know how high it will go here, but there is no denying that it is time it should head up. However, using this index, I prefer (better confidence) to buy when the low is a higher low - opposite for shorting.
I cannot say this enough: just because there is internal market weakness does not mean the indexes will be weak or not make new highs. In order to take advantage of this info, one must trade according to strength in individual stocks. Buy strong in long cycles, short weak in short cycles. Get out when the cycle changes direction.
I do do quite well with my FOREX predictions, but no, I'm not rich in money terms. Check historical posts. Euro still looks weak like I commented on last week. I was a little early.
Have a great weekend. I'll be doing taxes and doing my annual 2010 review of trade successes and failures. Sounds terribly fun. I already know I should have held SVM (WYNN too) longer - looks weak now though, but it will be fine over the next five years.
"To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward."
-- Sir John Templeton
at 7:14 PM